LOS ANGELES (PRWEB) MARCH 14, 2019
Simple Impact LLC is partnering with CoPilot provided by PAi Retirement Services https://www.pai.com/copilot to offer a low-cost 401k alternative plan to CalSavers, an upcoming state retirement program. When using Calsavers, any California employer with at least five employees, that doesn’t already offer a workplace retirement savings vehicle, will be required to either begin offering one via the private market or provide their employees’ access to CalSavers. “This is great for the employee, but the employer may have more burden than they are prepared for,” explains Shãn Sutherland, a wealth advisor at Simple Impact.
“The employer is responsible for providing employee information, setting up payroll deductions, and keeping a record of employee contributions,” continues Sutherland, “one problem is, many small employers are not prepared with the knowledge or time to respond to this upcoming requirement.”
Currently, if employees do not ‘opt out’, employers will send payroll contributions to a CalSavers account. This is similar to payroll taxes, social security, and Medicare. The kicker? Neither contributions to a CalSavers account nor any investment returns earned on a person’s contributions are insured or guaranteed. Employees who aren’t careful could lose money or not make any money at all.
“Isn’t it time we come up with more Emerging Community investments, to keep our money in small communities?” asks Sutherland, “It bothers me to have money easily flow overseas in EAFE and Emerging Market investments, and yet options for keeping it at home are limited. Meanwhile, private investors seem to understand how to benefit from small or struggling community investments.”
The choice to choose Simple Impact as retirement quarterback is an easy one. According to Employee Benefit Research Institute, savings rates for Americans with median income between $30,000 to $50,000 are 77% if they have an employer plan, and 3.6% if they do not. Advantages to a 401k include plan design that can benefit the employer as well as the employees, tax deductible contributions, enhanced contribution options for owners and highly compensated employees, and payroll integration. Employees will have higher contributions limits (up to $19000), pre-tax deductions from paychecks, employer contributions, and distribution options such as loans and hardship withdrawals.
A woman of many talents, Shãn Sutherland was featured in Forbes Magazine 2017 Women Business Leaders California edition. In addition to developing investment plans for executives and leadership professionals, she applies a unique gender filter when establishing investment portfolios that emphasize a women's contribution to corporate decision making and lifelong financial confidence. In 2013, 2016, 2017, 2018 and again in 2019, she was recognized by Los Angeles Magazine as a **Five Star(SM) Wealth Manager. Her credentials and designations are the result of a vigilant passion to meet the needs and requirements of her clientele. Her annual investment in education to maintain these credentials is part of her ongoing commitment and focus.
Sutherland has set up 401(k) retirement trusts for companies with 100+ employees and, more frequently, individual 401(k)s for S-Corps. Being responsible for the money of others, she obtained the Accredited Investment Fiduciary® (AIF®) designation, which increased her knowledge of fiduciary considerations when reviewing retirement plans. The AIF® process is best applied to overseeing and recommending choices for large-scale 401(k) retirement plan asset and charitable trusts. She also advises other fiduciaries (such as board members) on investment policies, asset allocation, and regulatory updates.
All eligible employers in the state of California can begin participating in CalSavers beginning July 1, 2019. Mandatory participation deadlines are June 30, 2020 (for 100+ employees), and June 30, 2021 for (50+ employees).
“Choosing a 401(k)-retirement plan is the chance for employers to show their employees they care.” concludes Sutherland.
Shãn M. Sutherland (CA Insurance Lic. #0D28620) is a Registered Representative and an Investment Adviser Representative with/and offers securities and advisory services through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered by Simple Impact or CES Insurance Agency. *Forbes feature is a paid promotional advertisement. **Based on 10 objective eligibility and evaluation criteria, including a min of 5 years as active credentialed financial professional, favorable regulatory and complaint history, accepts new clients, client retention rates, client assets administered, education, and professional designations. 3,528 Los Angeles area wealth managers were considered for the award; 154 (4 percent of candidates) were named 2019 Five Star Wealth Managers. The criteria used, the number of wealth managers considered for the award, and the percentage of those who receive the award, may vary from year to year. These awards are not indicative of the wealth manager’s future performance. Your experiences may vary. For more information please visit http://www.fivestarprofessional.com.